Markets Right Now: Asian shares fall after rout on Wall St

Markets Right Now: Asian shares fall after rout on Wall St

All but two of its 50 members are down this month, with last year's favourites Tencent Holdings Ltd, Sunny Optical Technology Group Co and AAC Technologies Holdings Inc losing more than 17%. Bond prices rose, sending yields lower as traders sought safe-haven investments.

Hong Kong's Hang Seng index sank 3.1 percent.

Market favorites including Amazon and Apple fell sharply.

An equities rout that wiped out this year's gains for US stocks is poised to spread to Asia Thursday as concerns mount that corporate profits and economic growth are peaking amid rising borrowing costs.

Caterpillar's stock price tumbled after the heavy equipment manufacturer warned that Trump's taxes on imported steel were driving up production costs.

Nate Thooft at Manulife Mutual Funds said: "Costs are increasing and it's often tariff-related". "If tariffs didn't come up in earnings calls and commentary, then maybe you could say we were moving away from that, but the opposite is happening". The Dow and S&P 500 erased their gains for the year.

Germany's DAX slid 2.2 percent and France's CAC 40 fell 1.7 percent lower. It closed down more than 100 points.

The Nasdaq slid 10 points, or 0.1 percent, to 7,457.

The S&P 500 lost 3.1 per cent to 2,656.10 and has lost about 9.4 per cent from its September 20 peak.

All 11 major S&P sectors were in the red, with the defensive utilities, real estate and consumer staples indexes posting the smallest losses.

‘Buck stops with prince for death of Khashoggi’
British Prime Minister Theresa May said its Saudi arms sales were "under review", a stance similar to that expressed by Australia. Instead, he said, Saudis are more supportive of MBS, as the crown prince is familiarly known, because he is under attack.

The reasons for the slump in Asia are well known: there's the US-China trade war, worries about slowing economic and earnings growth, tech shares plunging and rising rates amid Federal Reserve tightening.

That was the biggest one-day fall for the technology-focused index since August 2011.

Earnings from S&P 500 companies are expected to have increased about 22 percent in the third quarter from a year ago, though 2018 is seen as a peak for the profit cycle, according to I/B/E/S data from Refinitiv.

Tech shares were among those hardest hit, with Amazon falling 5.9%, Facebook down 5.4%, Google owner Alphabet off 4.8% and Netflix sinking 9.4%. Beazer Homes USA slumped 6.9 percent to $8.57. Intel, due to report earnings later this week, fell 4.7 percent.

It rose 1.3 per cent to Dollars 354.65 after the defence contractor's latest quarterly results topped analysts' forecasts.

Major equities benchmarks in NY tumbled to start the trading day on Tuesday, before rebounding to recoup most losses by close. Silver gained 1.4 percent to $14.79 an ounce.

Energy stocks declined despite the pickup in USA oil prices.

The dollar weakened to 112.19 yen from 112.82 yen on Monday. The region's equities have already lost more than $4.9 trillion in value this year, and Thursday isn't looking pretty. The euro fell to $1.1387 from $1.1467.

Worldwide credit rating agency Moody's has downgraded Italy's credit ratings in response. Japan's Nikkei 225 index rose 0.4 percent after a private survey pointed to a recovery in manufacturing in October. Australia's S&P-ASX 200 dipped 1.1 percent.

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